Hiring international employees can be an attractive option for growing companies. Countries like Guinea offer more cost-effective skilled talent than the US and Canada along with other benefits.
While salaries are important, there are many other costs to keep in mind when it comes to global hiring. For example, employers are typically required to make mandatory social security contributions. They may also provide staff with additional benefits like healthcare when competing for top talent.
This article will walk you through the fixed and variable costs of hiring in Guinea.
Costs to Consider When Hiring Around the World
The basic hiring costs in Guinea include:
- Employee’s gross salary
- Taxes and benefits
- Vacation pay and other leaves
- Overtime pay
- Severance pay
Plus, you may want to add certain optional costs like benefits, bonuses, and extras.
Mandatory Costs of Hiring an Employee in Guinea
Salary
With a vibrant young population, Guinea is an excellent location to hire fresh talent. The country is rich in natural resources and has a growing economy, making it a strategic location for expanding your business presence.
The minimum wage in Guinea is 550,000 GNF per month (about USD 64).
However, salaries for skilled workers and sophisticated IT talent will vary greatly. You can get an idea of average salaries by doing some market research or partnering with a local staffing agency.
Mandatory Taxes and Benefits
Payroll costs in Guinea add up to about 19.5% of the employee's gross salary. These include:
- 18%: National Social Security Fund
- 1.5%: National Office for Professional Training and Development
Employers and employees both contribute to taxes and funds. So, employers must also withhold:
- 0-15%: Individual Income Tax
- 5%: National Social Security Fund
Mandatory Bonuses
There are no mandatory bonuses in Guinea. However, it’s customary to reward high performance with bonuses.
Paid Leave
There are several types of paid leave entitlements in Guinea.
- Public holidays: There are 13 public holidays in Guinea.
- Paid time off: Full-time employees are entitled to 2.5 days of paid vacation for every month worked.
- Sick leave: Guinean employees can take up to six months of paid sick leave per year.
- Parental leave: New mothers are entitled to 14 weeks of paid maternity leave. For multiple births, maternity leave is extended by two weeks. The employer pays half the salary while social security pays the other half.
Overtime Pay
Guinean employees typically perform 40 working hours per week. Employers can require staff to work up to 100 extra hours per year. The first four hours are paid at a 30% higher wage. Any extra hours thereafter are paid at 60% more than the employee’s standard rate.
Severance Pay
There are fixed-term and indefinite contracts in Guinea. In both cases, terminations must be communicated via a written letter.
If there is no mutual agreement on a termination and/or no just cause:
- Fixed-term contracts: The employer must pay the employee the wages due until the end date of the contract.
- Indefinite contracts: The employer must pay the employee six months of salary.
Additional Costs of Hiring Guinean Talent
Today’s talent market is extremely competitive. To hire top Guinean talent, employers may also want to offer a benefits package, which can help both search and retention. Here are some benefits you might consider offering Guinean employees along with other possible costs.
Benefits
Offering the right benefits package can help you stand out from the competition. In Guinea, many employers offer private health insurance for employees and their families. Prices for this vary greatly, depending on the type and extent of coverage.
For highly competitive roles, you may also want to consider added vacation time, flexible schedules, extra pension benefits, and so on.
Bonuses and Extras
Finally, you’ll want to think about smaller expenses like gifts for special occasions, comped meals, or coffee for meetings.
If you hire one or two employees in Guinea, they’ll likely do remote work. Even so, you may want to pay for a coworking space or provide funding to set up a home office.
However, you might be hiring an entire team to work on larger projects such as software development. If that’s the case, it can be wise to rent an office space to facilitate collaboration among your staff in Guinea.
Average Cost of Hiring One Employee in Guinea (Annual in USD)
Below is an estimate based on a salary of $100,000 for an employee in Guinea. This salary is for ease of calculation only. It will change depending on your hiring goals including the employment contract, the candidate’s experience, and the type of position.
- Salary: $100,000
- Employer Taxes: $19,500
- 18%: National Social Security Fund
- 1.5%: National Office for Professional Training and Development
- TOTAL: $119,500 + Benefits (discretionary)
Note that these totals do not include other standard costs like soft benefits commonly offered in Guinea.
A Global EOR Can Help You Manage International Payroll
With so many costs to consider, it may feel overwhelming to start hiring globally. An Employer of Record (EOR) can help. An EOR like Borderless can help you hire and pay employees in Guinea in accordance with local employment laws.
If you’d like to begin global hiring but aren’t sure where to start, book a demo with Borderless. We’ll walk you through every step, so you can reap all the benefits without the added headaches.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
